Relating to the application of funds under certain construction contracts.

HB 3288 prevents trustees from withholding or diverting trust funds tied to a construction project due to disputes unrelated to that specific project. It requires trustees to apply funds only to the contract that generated them, making it illegal to withhold money for other disputes (e.g., disagreements about separate projects). The law applies only to construction contracts entered into on or after September 1, 2025, directly affecting contractors, developers, and trustees handling project-specific trust funds. This clarifies that misapplying funds during unrelated disputes constitutes a violation under Texas Property Code.